Vietnam's digital economy is on a trajectory of rapid growth, with e-commerce and online travel leading the charge, according to a new report from Google, Temasek, and Bain & Company.

The 9th edition of the e-Conomy SEA report, titled "Profits on the Rise, Harnessing SEA’s Advantage," predicts Vietnam's gross merchandise value (GMV) to reach a substantial $36 billion by 2024, fuelled by a remarkable 16% compound annual growth rate (CAGR).

Online travel is particularly flourishing, expected to achieve a $5 billion GMV by 2024, representing a 16% year-on-year increase. This robust growth in online travel significantly contributes to the overall digital economy expansion.

Beyond e-commerce and travel, Vietnam is also a leader in online media growth within Southeast Asia. The report forecasts a $6 billion GMV for online media in 2024, with a 14% CAGR, and anticipates a further surge to $11 billion by 2030.

The ride-hailing market in Vietnam is becoming increasingly competitive, fueled by the emergence of local companies and the adoption of electric vehicle (EV) options.

Transport and food delivery GMV are projected to reach $4 billion in 2024, demonstrating a 12% increase compared to the previous year.

Mr. Marc Woo, Google Asia-Pacific's Managing Director for Vietnam, emphasizes the strong and steady growth observed in Vietnam's digital economy over the past five years. He highlights the continued affirmation of this potential in 2024.

Mr. Woo also notes the growing interest in AI among Vietnamese users and the government's prioritization of this sector.

The report reveals strong demand for AI, particularly in urban centers like Ho Chi Minh City and Da Nang, where the education, marketing, and healthcare sectors drive the highest volume of AI searches.

The report, which provides an update on digital economic trends across six Southeast Asian countries (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) in six key fields (e-commerce, food delivery services, transport, online travel, online media, and financial services), sheds light on a significant shift towards profitability in the digital economy.

It also highlights the robust overall performance of the Southeast Asian digital economy, with a projected GMV of $263 billion in 2024, representing a 15% increase from the previous year.